Given the information in the figure above, Liz has a comparative advantage in ________ because ________
A) smoothies; her opportunity cost of producing smoothies is lower than Joe's
B) salads; her opportunity cost of producing salads is lower than Joe's
C) smoothies; she can produce more smoothies per hour than Joe can
D) salads; she can produce more salads per hour than Joe can
E) both goods; she can produce more of both goods per hour than Joe can
A
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If AD and AS increase at exactly the same rate, the result will be
a. demand-side inflation. b. supply-side inflation. c. falling prices. d. stable prices.
Starting from an initial long-run equilibrium, an unanticipated shift to a more expansionary monetary policy would tend to increase
a. prices and unemployment in the long run. b. real output in the short run but not in the long run. c. real output in the long run but not in the short run. d. real output in both the long run and the short run.
Research suggests that about ________ percent of people living under the poverty line in any given year are chronically poor.
A. 8 B. 13 C. 38 D. 3
According to the purchasing-power parity theory, differences in domestic inflation rates are a major cause of exchange rate movements.
Answer the following statement true (T) or false (F)